Recommendation 14

We asked what assurance the Cabinet Office and HM Treasury can give taxpayers that any savings will reflect actual reductions in spend, rather than shifting spend to other categories, such as contingent labour. The Cabinet Office explained that it is monitoring all categories of external 26 Letter from the Cabinet Office, 5 January 2026 27 Q 36 28 C&AG’s Report, para 1.29 29 Qq 35-39 30 Qq 39-41 31 Qq 32, 40 32 Q 32 33 Letter from the Cabinet Office, 5 January 2026 10 resourcing (consultancy, contingent labour and professional services) to see that cost reduction is happening across the board.34 In written evidence provided after the session, the Cabinet Office indicated that analysis of departmental accounts shows spending is forecast to reduce across all three categories, with a reduction of over £1.17 billion in real terms by 2030. In addition, during the Spending Review 2025, HM Treasury set individual limits on consultancy spending for each department who have all agreed plans to stay within these limits. The Cabinet Office stated that further details will be published in the Civil Service Strategic Workforce Plan.35 34 Q 33 35 Letter from the Cabinet Office, 5 January 2026 11 2 Government guidance and planning for the use of external consultants Out of date guidance